What To Expect From XPO’s (XPO) Q2 Earnings

Freight delivery company XPO (NYSE:XPO) will be announcing earnings results this Thursday before market open. Here’s what you need to know.

XPO beat analysts’ revenue expectations last quarter, reporting revenues of $2.10 billion, up 7.3% year on year. It was a very strong quarter for the company, with a beat of analysts’ EPS estimates and a decent beat of analysts’ EBITDA estimates.

Is XPO a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.

This quarter, the market is expecting XPO’s revenue to grow 10.1% year on year, improving from its flat revenue in the same quarter last year.

Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. XPO rarely misses Wall Street’s revenue estimates.

Looking at XPO’s peers in the ground transportation segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Knight-Swift Transportation delivered year-on-year revenue growth of 12.6%, beating analysts’ expectations by 2%, and Landstar reported revenues up 18.1%, topping estimates by 7%. Knight-Swift Transportation traded down 4.9% following the results.

Read our full analysis of Knight-Swift Transportation’s results here and Landstar’s results here.

In the last year or so, investors have shifted their focus from one macro dynamic to the next (AI disintermediation and AI investment to geopolitical conflict, interest rates, and the health of the wider economy). While some of the ground transportation stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 3.3% on average over the last month. XPO’s stock price was unchanged during the same time and is heading into earnings with an average analyst price target of $228.61 (compared to the current share price of $204.86).

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